for tech talk. rather horrifying actually >> i haven't seen it yet but it looks scary. it's about an ai robot we talked to see many executives especially elon musk very scared about the negative implications if ai takes over >> my prediction it's going to be this generation's courteney cox. when the franchise kicks off, that's you >> happy new year, everyone. let's get to the half. i'm scott wapner front and center this hour good-bye 2022, hello new year. but will it be a better year for your money we'll discuss and debate that with the investment committee. we'll show you what we're doing just past 12:00 noon in the east on this final trading year of the day.

dow down about 200 points. s&p approaching that decline there. nasdaq down about the same amount we always check the ten-year note yield at 388. so we'll keep our eyes there as what would be the worst year since 1945 joe, the worst since '08 the good news is that the market tends to not have another down year after an already dismal year, for whatever that is worth. >> i think the best news is it won't be 2022 anymore because we just want to say good-bye to it completely i think the beginning of the year is where the highest probability exists to be a high recovery rally i would be surprised if in the first two weeks of january you did not see a return of capital into the equity market, into the fixed income market. i think generally right now is the expectation the cpi print on

january 12th is going to be a benign one i think the setup is a favorable one heading into earnings. >> out with a new note today not necessarily looking for a huge thing in the stock market to start the year but a favorable cpi. inflation may be falling faster than widely expected as part of his note today the problem is based on our cnbc stock survey results, people aren't looking for much next year i mean a third say we're going to have below average returns for next year. you've got 20% of those we ask say 1 to 5% and 1 to 5% who say negative >> when you say the problem is people aren't looking for much next year i actually don't see it as a problem. i think it's terrific because i think one of the most important

things happening this year is that expectations are being reset to reasonable. and if we have reasonable expectations and behave rationally, we can actually set ourselves from a decent investment environment for the next ten years and everyone is so miserable about this year like oh, it's the worst, it's awful. i'm down 20% annualalized return on the market over the past three years is right where it should be. it's about 7%. over the past fbi years it's about 9% i think we collectively as investors have rational expectations and behave rationally we'll make the returns that will get us to functional places in our retirement when the expectations are not much, what is that 6, 7, 8% after a year like this, to me that's just fine >> the question is, jason, do we

have the capability of even doing that given all that we know or we think lies ahead? >> yeah, i think it's an important question to ask. and i think she makes a great point in what the last three years have been. when i look to turning the calender the first thing that comes to mind is obviously the fed and these are historic numbers. we might see another 50 to 75. and as we've been talking about all year and the fed in their commentary they'll likely hold and what are the lag effects of all that has happened this year with labor, ow rent wrg housing,

all will take shape in 2023. i think once we can get beyond that there is some opportunity i think the market, again, 20 plus percent, and the s&p 30 plus percent in the nasdaq history has told us we don't see a lot of negative years two years in a row, so i think those also could play well going into it the new year, and let's see how the next quarters -- couple of quarters present itself here. >> undoubtedly, joe, the biggest question is going to be around earnings and what the right multiple is for stocks with a recession lurking. if you look at what happened in the market this year, so the beginning of the year the s&p had a forward pe of 21.5%. it's down to 16.7. the dow was at 19, now it's north of 16. nasdaq was just 32 it's down to 22.5 there. maybe that's the biggest point

of contention is that 22 times and whether the nasdaq has had a rerating enough, and someone suggested it has not, and maybe that's the most open ended question while we've seen, you know, obviously the market come in from a more dramatic perspective from a technology and nasdaq >> if you remove the valuation for megacaps, the valuation for s&p is lower >> way lower >> so i've said all along it began in december of 2020, the russell 1,000 growth index had a pe at that time in the 40s this has been a valuation for risk assets and equities and touching the last place. the last line of defense was megacap equities when you ask the question what is the right valuation going to be for in particular nasdaq stocks -- >> for anything and the problem

with the issue is you can't answer it yet. you just don't know because we really don't know what earnings are going to be if there's going to be a recession. >> a rerating across the whole market has to take place not even getting to tech yet >> i think that's fair, but i think you could assign a degree of volatility to the equity size class, the nasdaq, the s&p, the blue chip stocks i think the volatility remains high you still have the suspicion that there has to be more valuation contraction in a lot of the growth and higher growth stocks that are represented in the nasdaq, so i think that's important to keep in mind, and that's why from the risk management perspective you're still more inclined right now to look away from those names until a better environment presents itself >> so earnings are the biggest question according to our survey the biggest concern -- and by the way all of you participated in this survey is the fed

overwhelmingly so 73% say the fed is the biggest market concern right nowp next is a chinese invasion of taiwan the fed is and will continue to be pretty much the whole game. >> i can see where you're going. i can see the wheels were turning as i was saying that how could you be in any disagreement the fed is the whole game in town for stocks. >> what'd you answer >> i think if there was an other or i might have done china and taiwan, and it's funny because i didn't remember exactly what are did because all of those to me

are highly anticipated china and taiwan that's really scary and then i think we have a real problem, but it's lowest odds on what's on the list with respect to the fed who doesn't already know what's going to happen next year. i'm going to say everybody does know >> they decreased the balance sheet by 95 a month. they're going to continue to do that for 4.5 years they're going to raise by 25 basis points we know we're in a tighter environment. we know that fed funds is probably going to end up in a 3.5% to 4.5% -- >> you mean 4.5 to 5 if not higher >> i'm going to guess it settles out lower in the long run. >> that's what i'm saying we

don't know we collectively don't know exactly what they're going to do or where they leave it where the peak ultimately gets to. that's a problem, too. >> it's so directional maybe we don't know the exact, but to me it's so directionally predictable, i hear you. to me the fed isn't what i worry about the most next year what i worry about the most next year in a realistic way is earnings coming up much shorter and worse. right now the only way you get to 4,100 on the s&p, the only way you get there is 2 and $300 earnings 18 times. i don't want to pay 18 times for the market the demand side of the equation what are people willing to pay there's not much liquidity there. >> i think part of our issue, though, is before you can say that you don't really have the

answers of how to even formulate what you think is a fair valuation for the market, joe. >> so i think about the forecast for '23. i think about the risk i think one risk that resides itself and i would include myself in this is that consensus is so defensively positioned, they are so pest mystic that the actual risk they're incuring is they're not invested in the type of way they should be if everything falls into place. conversely, though the concern with the federal reserve for me resides itself in the balance sheet, and you don't know the answer to what they're going to do, what the path is going to be there because they are behind. they're 30% behind in their intended target for the balance sheet. they have thought been able to roll-off the amount of securities that they told us they were going to >> let's not forget the make-up of the "they" changes a bit in

who votes and who doesn't. senior economics reporter steve liesman joins us with more on that steve, it's not just who does more on what but part of who the who is >> i don't know, scott, what do you need me for? you've got it all figured out there. it's kind of interesting no, i know i think the personnel issue is interesting. it's a little unclear to me where it all lays out. i think she's going to be a person more concerned about systemic risk in the banking system and in the financial system in general. it's why i think the fed ought to a little less than advertising than that because rolling off the balance sheet is probably -- and we talk a lot about rates. not that chart if you would go to the one that

says balance sheet it would be great. and you'll see it there. not that one either. it's the next one. thank you very much. you don't have it? nevermind. it's probably my fault i'm going to call up the numbers. the numbers are you're going to go down from where we're starting the year and down to 7.4 trillion a trillion here, a trillion there, pretty soon it starts to add up at some point the roll-off on the balance sheet is going to be binding. it's going to have an effect on the market let me guarantee you i don't think the fed knows what it's going to do. and while you say the fed is a source of volatility and uncertainty, i think that volatility and uncertainty flows directly from the outlook from the economy. and we don't know what inflation

is going to do there's some optimistic outlooks out there. and we don't know what inflation is going to do and those are really the unknown. i will show you if you go back now to the other charts, guys what the rate outlook is and there's two things to watch here the first is this idea there's this peak 5% funds rate in june. and then you see the harrington idea if the fed rolls off of it. i'll show you the distribution right now of the outlook of may. this could be 7% of the folks think they're going to cut 25 in may. 40% or so remain they're going to remain at that 490 or 48 rate and 41% think they're going to hike and by 25 and 12% go 50 this is where the possibilities start to fan out and it becomes

wider of the unknown and it's all going to depend upon what do we get three or four more inflation reports between now and then, but pretty steady through the first quarter i think is the outlook i think the other part, though, what happens beyond may and into june, that's where it gets to be unknown. it's going to be entirely dependent upon the unknown and growth outlook >> do you think, steve -- obviously, we don't have another fed meeting until early february are we leaning at this point towards 25 over 50, or does it really hinge -- >> yeah. >> so it doesn't so much hinge obviously i guess to some degree it always will on the cpi which released on january 12th >> i billed in the 25 for

february, and billed in the 25 for march. i've got 60 plus percent in the market i think they want to get up towards 5% and let it sit there for a bit. what i don't want them to do, scott, what i worry about is they go too far on the funds rate and don't let the balance sheet have an effect the retiring kansas city fed president had this idea don't engage in a balance sheet runoff i've got a lot of reasons why i think this balance sheet needs to runoff, get the fed out of the mortgage business, create some capacity in the balance sheet, and also get the fed as much as possible out of the market so that the market is able to do its own thing so i think there were reasons for the fed to get out of the balance sheet business and bring down the amount there, and i don't want to see that endangered by raising rates. i also think, scott, there's two things happening the balance sheet is going to start to bite the economy.

and also important remember the fed is getting help from europe and japan it wasn't getting before, and i think that will also have an effect. it's also pushing up u.s. yields as well. >> steve, your insights have helped us as well. i look forward to many more appearances from you in the new year as well >> it's an honor to be on with the great people on this show and you. >> that's steve liesman. let's pivot back before we go to this idea of, okay, given what steve said, given where all you believe we may be and the market seems to be voting it seems clear in this moment and also seemed clear in other moments that haven't had the staying power thought, will it be different this time >> absolutely.

and obviously in recent -- in recent past value has not -- the staying power hasn't been there and growth has obviously super seeded that. what i will say we've been in a low interest rate environment, virtually no interest rate environment for almost a decade now. so when i think about value going forward and earnings and, you know, profitable stocks that have been better obviously producing earnings today, i anyhow i like value going forward and also with the fed that is more engaged and higher for longer, i think value can continue to work here. and i think growth will likely take a back seat going into the '23. so that's pretty much where i stand here just in that critical debate which i think is important to have. >> joe, it's going to bea rough year i just can't imagine how it's going to be a really positive or successful year for stocks if the megacaps have another

terrible year. some would suggest the market is not so reliant on them like people think it just seems hard to believe that you can have a good year in the market if you're going to have a bad year again in megacap tech >> i think you have to quantify a bad year i mean 2022 i would say was an abysmal year for a lot of these megacap names. >> statistically down beyond the s&p, in some cases down like amazon almost nearly double. so it's a bad year where the megacaps maybe underperform the overall market by maybe 5% or so -- >> let me ask you this what it if the megacaps are flat for 2023 >> i think the market could be okay in that situation >> as long as you pick up slack from other areas, some cyclicales which there's a fair amount of focus right now as being a place you want to be

>> it's interesting because growth stocks are still trading at 22 times earnings roughly accurate so they're historical multiple was 18.6 times value on the other hand is trading at 12 times. it's still plow their historic multiple we can see that rerating we've been talking about so i think the megacap growth stocks, they can rerate simply by plateauing and letting their earnings grow like # 5, 6% meanwhile you've got like 450 stocks in the s&p 500 trading at really low valuations. and as those rerate, many of those are going to move from that like closer to 12 times multiple maybe back to there 13 times, maybe 14 times. so we see a mean reversion, and i think this is going to be the year -- >> things have to work well for that you can't have a recession and valuations and multiples of those more sensitive stocks to the economy go up.

it's not going to work >> this is where we argue again how much the idea of a recession is already priced in to joe's point it wasn't a bad year it was an abysmal year for many of the these stocks. literally amazon down 50%. >> i'm talking about industrials and more cyclical stocks, the kinds you're actually talking about that can have an increase in their multiple. >> yes, but many of those are down also 30, 40, 50% this year and what they've done is already anticipated. this is where we go if we have a recession it'll be the most highly anticipated, widely advertised recession blah, blah, blah we've ever had. the share prices i think have overshot the terrible idea of a recession coming >> let's give you a programming note for more on the economy in 2023 tune in tonight 6:00 eastern for a cnbc special report, taking stock it's hosted by brian sullivan. coming up the investment committee making some moves in the market as well jenny harrington has a new stock

buy to tell you about. jason snipe has two stock sells to tell you about. they will next

we're back and we have some moves to tell you about from the committee today. jenny harrington has a new buy, advance auto parts when'd you buy it? >> yesterday >> okay, tell me why >> this is kind of exactly what we were talking about. the stock is down 40% year to date in 2021 they started a new program where they're returning huge amounts of cash to shareholders right now you've got a 4% yield trades at 11% times. they trade at 20 and 26 times earnings, so you've got auto zone which is -- you might think this is a silly think to say but you can look at earnings and revenues go way back on this in a tough economy you might put off buying a car but you cannot fixing up the car you've got there's still huge demand for

auto parts there will be for a long time, so you've got economic resilience i think you've got a stable consumer, and you've got a business trading dirt cheap. this is one where i think it overshot the worst case expectations by the way, earnings for next year analysts are expecting a little growth over this year it's 12 foit 5 earnings this year with $6 dividend. we think analysts are being overally optimistic. when a stock is trading at 11.5 earnings you have a huge story i think the right thing to own to actually make money in a tricky year like 2020. >> you did mention auto zone the performance has been striking in terms of the out-performance of auto zone this year plus 17 versus down 40 >> right this is -- there's always been

pressure on advanced auto parts because it's a constant integration, merger, messy story. anybody that wants to buy i do advise you to watch the analyst day they've recorded from april this year. one of the things they talk about is their systems were like 21 years old and just that system's integration has taken years and years longer so they have a huge discount the stocks got no love, but it's kind of just fine. >> all right, well, it's getting some love right now as we speak. jason snipe, you have a couple moves, too, i think will be interesting to our viewers twillo and sold shopify. >> both twillo and shopify as joe and a lot of the panelists have described all year price of sale stocks very high beta names with no profits, right so these are names that have

been tough so i right sized twillo early on this year in february. very innovative communication platform but the dpied in the last quarter is difficult in terms of long-term organic growth slowing in 2023 so we decide to unload it actually yesterday and then on shopify's side i think, you know, thinking about cyclicales and thinking about retail, they're very sensitive to retail sales going forward. they had a very strong, you know, holiday weekend. cyber monday was really strong for their record numbers but for me as we go forward to potentially a slow down and sensitivity to retail sales we felt that it was time to unload the rest of our position again, they were micropositions for us at this stage, but their names i feel like are very innovative, have a long growth period ahead, but we'll probably look at them some time in the summer next year twilio was a joe teranova name

at one point >> i got rid of twilio kind of going into the pandemic, bought it on the other side and quickly scrambled. one of the few stocks that has done well the last five years. it's a great company, and the only thing that comes to mind is i say to myself here's a company that we know the business model is one that's anative for a technology company is it now cheap enough, scott? i think this is where you know the market begins to bottom. if we begin to see some mna in technology itself, that's when you can feel comfortable you're at a bottom. in this company it wouldn't take very much. a market cap of 8.9 billion. that's a pretty additive company for a large cap technology company trying to add some growth >> you know what's interesting

about that, joe, i was thinking -- and this is not part of my investment thesis but actually similar to advanced auto where this is a huge free cash flow company, and what are the private equity guys going to look for they're going to look for certainty and the market cap is $8 billion when you start to think of these things from a private market perspective you can see a lot of value in that. >> next week on half time we're going to kick offour annual stock summit the committee has the most conviction in 2023. we look forward to that. coming up, our chart of the day. surging more than 100% just ahead on half time. welcome back to earth. thanks, it was pretty life changing. dude it was eight and a half minutes. i didn't even get to finish my burrito.

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welcome back to the half time report. i'm contessa brewer. nbc news has learned an arrest has been made in connection to last month's brutal killing of four idaho college students. brian christopher was taken into

custody in pennsylvania more than 2,500 miles away from the crime. police in moskow, idaho, said they would have a news conference today the death toll at a casino and hotel complex is now 25, but authorities worry that number will grow. an initial investigation found the fire may have been caused by faulty holiday decorations using too much electricity president biden announced six new pardons today including former members of the military none of the individuals are currently serving a sentence and the white house said biden is committed to providing second chances for those who have demonstrated their rehabilitation >> contessa, thank you let's get to our chart of the day. it's occidental petroleum.

having their best year on record it's the best performing stock in the s&p this year i could go on and on, i could also say that the jo.t holds occidental we're closing out a year in which energy equities are up well over 50%, significantly outpacing the stock commodity itself i think oil is basically up somewhere 5, 6% for the year natural gas up 10% it's been about these energy companies having the discipline from a management perspective and really focusing on how it is exactly they can improve the balance sheet, return capital to shareholders in an environment where they've also benefitted from an early price spike at the beginning of the year. >> which area will you be

concentrating onto start 2023, 41% say energy stocks that led the way. and do you think energy stocks are going to continue that leadership role into the new year >> these are crazy numbers we've seen actually, if you think about it they're 70% ahead of the market. do i think energy stocks are going to be 70% ahead of the bottom market next year, no way. i'll be happy if i'm wrong on that strong statement. i think they have largely rerated already. and that's -- joe says it's the cash flow and capital discipline and that's all true, but mostly just people saying these are all high quality well run companies that produce a lot of cash flow and so they took them from two and three time earnings to seven and eight times earnings multiples. i don't think those multiples go into the teens next year >> let me ask you this, joe, if

you're -- i'll ask both of you for the answer because the answer is maybe different. you're both sitting on chevron, okay chevron year to date is up 52% now, you have exxon -- joe, you have exxon exxon was up almost 80%. why not sell those if you have those you're up 80% this year. >> the supply to the demand environment is still demanding investors maintain position there and allow the environment to tell you when to get out. what do i mean when i say the environment? number one, supply relative to surging demand, and number two, earnings i need to see the deterioration in earnings for me to become an active seller of the energy names. i'm going to use a quick analogy if i could, okay what's up the last five years

every year farm commodities whether it's corn, whether it's soybean, whether it's wheat, and they all have exactly what i'm speaking towards, the right supply demand imbalance and also the earnings growth. so using that analogy, okay, i could say to myself well it's happened for fallen commodities, we could have that type of multiyear run for energies >> can i tell you exactly what i've done? i actually did sell chevron for accounts where they didn't have capital gain i have huge capital gains this year and i've tried to offset them i replaced it with about a 2.5% position in pioneer. again, i manage a dividend and income strategy. as soon as we turn the calender quarter also chevron for the rest of the taxable accounts to own it and take 4% energy off the table, put 2.5% back in and

to me that's a good portfolio. >> interesting jason snipe, you have chevron, too. >> i do. and i still remain overweight on the company and the whole sector as a whole i just think everything joe and jenny said, i mean we always talk about the supply and demand dynamics, and that's true. but i think when i really focus on energy it's about the earnings power and all about the fundamentals i think energy can still do well to jenny's point i don't think it's the out sized returns we saw this year we'll see next year, but i think it'll be a relative strength sector, you know, in the overall market. >> okay. all right, coming up next one of our new segments in 2022, grade your trade we're going to do it next. you can keep sending it in you can find us on twitter you can e-mail us askhalftime@cnbc.com

we are are right back.

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and now a lot more people can. so let's go. the digital age is waiting. all right, let's grade some trades now jason snipe, you got the first one. it's from chris c. says a few weeks ago i bought 300 shares of amazon at $89.

my time horizon is to hold for ten years. that's a long time what do you think of this trade? >> yeah, so i would give it a "b" here i think obviously an rsi below 30 is reflective of oversold conditions, so for me amazon has been a disappointment for almost two years now, right the stock is down 50% year to date there's been a deceleration, you know, in aws, advertising and a shift from goods and services. with apen tf year time horizon i could almost guarantee ten years from now amazon won't be where it is today. they're a very innovative company. i think the advertising business will continue to grow and cloud is still in the early stages of development. aws will do well, so i like this trade here especially in a long-term horizon.

>> i sold cadence design yesterday at 162.50. it's in the jot. what's your grade on this? >> i'm going to give rita an "a" on this. keep in mind the stock was as high as 194 back in august, but yesterday it breached below all of its major moving averages fundamentally you do also have the wild card, that's the exposure to china, 13% of its revenue comes from there so rita, nice job. that's an "a." >> good stuff. well-done, rita. jenny, you get the last one. i'm a retired stockbroker. i bought uber at 47, 34, and then at 29 what do i do now >> i thought he was going to say do i get on that trade here i averaged it out i figure you probably pay $36 on average and makes it down 46% which is double the market so

sadly you get a "d." but we bought uber a couple dollars ago. they're going to start to make tons of free cash in the next couple of years. i think they're going to make 2.2 billion in 23 and for here i think there's a lot of up side unless your position side is enormous i would add to it here. i think it's a great stock to own. it can be turned around with a little extra work, extra credit, but you're a tough grader. i appreciate the fact you keep it real. >> thank you >> we'll take a break. keep your frads coming in, by the way. send an e-mail you can tweet us use the hashtag grade my tdera coming up mike santoli has his midday word. we're back after this.

we're back on the half time report senior markets commentator mike santoli joins us right here for his midday word. my midday word would be good riddance not to you but to the year >> it's been kind of a grind even if it hasn't been straight down, we've been saying it's been range bound since may, i think it's tempting to kind of dismiss the holiday week, and we can't really say there's a quorum out there telling us what's happening couple things to keep an eye on. one is that bond yields are not going quietly. they're well below the highs it doesn't look like it's

really, you know, a stress level for equities yet, but keep an eye on it as we try to figure out what inflationary expectations are wholesale gasoline prices bouncing so all these things we feel we've been able to shove to the side and say, okay, been there, we've figured that out, you have to figure there's been some factors next year. even if i think valuations are in a somewhat better spot, not great, and we're benefitting from a low hurdle of diminished expectations >> seems like yields went up a little bit, stocks went down a bit on the chicago number. a little hotter than expect, just raises that good news for the economy is bad news for the market environment with the fed. >> and also perhaps suggests we continue to overanticipate the real break down in the economy, when it's not really there across the board housing in the tank -- we can point to all these things that say the worst is coming, but the data is not quite there at least

in a wholesale way >> semi stocks on pace for their worst year since '08 onbiplere g ay of the group getting a big downgrade today. we'll discuss that next in our call of the day.

all right. welcome back our call of the day is micron. the largest u.s. memory stock, downgraded to hold today from buy at argas they note the challenging environment. no big shock there they say the cut reflects

prospects for deep operating losses at that company over the next few quarters. nobody on the desk owns it but let's do it this way, joe. is this a "take this ticker symbol, and substitute almost any in the chip space right now, given what is an expected quote/unquote challenging environment," how about that >> i think it's correct to say it's a challenging environment but, no, i think that first-in, first-out is the case for the semis. i think the semis without question were the first to experience the valuation contraction and the valuation recession. i think there are places within the semis where you have seen the bottom kla corp., on semi, microchip, texas instruments, which i own personally i do believe that you can find tactically opportunities in the semispace. and yes, i acknowledge the overriding environment still remains a challenged one

>> worst-performing dow stock this year, jenny >> i knew it -- >> i knew what it is >> i didn't just pull this out because i wanted to bring it up on purpose, but it's intel, right? >> of course it is >> it just goes to my, you know, take the ticker of micron out. can you subalmost any in the group in and think that, let's say for the next handful of months, it's going to be challenging. >> i don't think you should do that i think you really should be a real investor on these and say, my starting place is today let's look at each one of these on its own individual merits and what does it have going for it from here? what's the valuation, what are the earnings opportunities and i know we sold amat, that was like a month and a half ago. and the idea there was, we didn't think that there was earnings growth ahead and it was trading at an historic multiple. we didn't see earnings growth or multiple expansions. we still own teradyne while it's more expensive than others, they're all different.

so you can't lump them all together i think you're doing yourself a disservice even on intel, look at it today and say, hey, what might earnings actually be it's different than nvidia, it's different than micron. >> let's talk about invidya. maybe no chip name is in the crosshairs or, you know, under as much pressure than nvidia for where it once was, where it is now, and the belief that people still have in it >> there's no doubt about it, scott. i mean, obviously, all the chips, you know, smh is down 34%. nvidia has had some challenges with the chip, you know, some of the chips they're sending to china. obviously, the multiple is high. you know, nvidia is a long-term holding for us i mean, gaming data center is obviously all slowed this name has done great over the last decade, but it has been challenged recently. and even though i don't own micron, when i think about inventory, inventory has been the issue. you know, with the semis

and steph has always talked about this, double ordering that they're experiencing throughout the year is now coming to roost. and that's been the problem. >> yeah, you go from a shortage to a glut. and that's going to be an issue that we'll be talking a lot before we get into '23 we'll take a quick break and do final trades, next what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.

hello, world. or is it goodbye? you know, it seems like hope and trust are in short supply. [clap] now, as businesses we can blame and shame. or... [whistles] we can make a change. [clap] we can make work, work for our communities. create more equal opportunities. [clap] it's time for business to show its true worth. because it's not goodbye, world. it's hello, team earth. [clap]

we're going out with a bang in overtime. jeremy siegel of the wharton school will be with us to sum up this year and more importantly, what he thinks lies ahead for your money in 2023 he's been with us almost every step of the year through a turbulent year cannot wait until we catch up with him as we close it out. let's do final trades. jason snipe, what do you have for us >> i like evantor here it's a chemical company that provides medical equipment to health care companies. it's got a 6% free cash flow yield, and it also trades about 16 times earnings. it like it here with the tailwinds in health care that we see going forward. good stuff happy new year to you. great having you part of the team this year >> same to you >> we'll see you soon. >> jenny harrington. kohl's stores down 8% on the yield, $4 of earnings, $2 dividend as mike santoli said earlier,

this is a stock that he said overanticipated the economic breakdown. >> all right, finally? >> feels so good to give a final trade in 2022. i'll go out saying charles schwab, and most importantly, be long health and happiness. >> happy new year to you all all of you, too. we look forward to spending 2023 thll of is now. >> thank you, scott. hi, everybody. i'm kelly evans and here's what's ahead today on "the exchange." stocks unable to keep the rally going in this final trading day of the year. we'll take a look at how we started versus how it's going, and get the one thing that could have the bulls charging next year speaking of bulls, energy is the only sector finishing the year higher, and not just a little bit. it's up by 58% but 2023 could be the year of the run ends and we'll tell you why. plus s.n.a.p. proved to be the